Financial institution of mum and pa funding 25% of youthful driver automobile purchases

Over 1 / 4 (26%) of younger drivers are counting on their dad and mom to purchase them a automobile, in line with new analysis from AA Vehicles.

The survey of 11,000 motorists additionally discovered that over a 3rd (34%) must obtain monetary assist from the Financial institution of Mum and Dad to get them over the road to buy their very own automobile, even when it’s not being 100% funded by their dad and mom.

Almost half (49%) of those that had a automobile purchased for them, stated it was a reward for passing their driving check, whereas 23% acquired it as a birthday current, and 4% as a Christmas present.

Different events for receiving a automobile included beginning college or celebrating examination success. 

Nevertheless, most younger drivers don’t profit from such generosity.

Three-quarters (74%) of respondents on this age group reported that they had by no means been gifted a automobile, whereas 66% had not acquired any monetary help from their dad and mom.

Rising price of automobile possession

The rising price of automobile possession has made it much more tough for younger drivers with out monetary assist to get on the highway.

The price of insuring a automobile, specifically, stays a major monetary burden for a lot of new drivers.

Nevertheless, separate AA Vehicles analysis reveals that the used automobile market is turning into extra reasonably priced at current.

The typical worth of the 20 hottest used vehicles on its platform dropped 6% within the third quarter of 2024 in comparison with the identical interval final yr.

There are even larger financial savings for smaller hatchbacks reminiscent of The Fiat 500 which registered a formidable 20.4% annual worth drop, adopted carefully by the Ford Fiesta (19.8%), Ford Focus (15.2%), and Volkswagen Golf (12%).

These automobiles, typically chosen by younger drivers as a consequence of their affordability and practicality.

As well as, fashions just like the Fiesta are additionally historically cheaper to insure, providing an additional benefit for brand new drivers trying to maintain prices down.

James Hosking, director of AA Vehicles, stated: “Getting on the highway has change into a major monetary hurdle for younger drivers right now.

“With the price of residing at file highs and the common worth of a brand new automobile properly above what earlier generations paid, many younger drivers face an uphill wrestle to afford their first automobile with out household assist.

“Not everybody has the privilege of being gifted a automobile, however our analysis reveals that folks typically attempt to lend a serving to hand — even when it is simply contributing to a portion of the value.”